AECOM (NYSE:ACM), a premier, fully integrated global
infrastructure firm, today reported fourth quarter revenue of $5.3
billion and full year revenue of $20.2 billion. Net income and
diluted earnings per share were $84 million and $0.52 in the fourth
quarter, respectively. Net income and diluted earnings per share
were $136 million and $0.84 for the full year. On an adjusted
basis, diluted earnings per share1 was $0.83 for the fourth quarter
and $2.68 for the full year.
Fourth Quarter ($ in millions, except EPS)
As Reported Adjusted
(Non-GAAP)
As Reported YoY % Change
Adjusted YoY % Change Revenue $5,306
- 9% - Operating Income
$177 $2181 9% 9%
Net Income $84 $1341 (5%)
12% EPS (Fully Diluted) $0.52
$0.831 (5%) 12% EBITDA
- $2331 - 4%
Operating Cash Flow $532 -
112% - Free Cash Flow -
$5112 - 121% Backlog $54,070
- 14%3 -
Financial Performance and Outlook:
- Organic4 revenue increased by 9% in the
fourth quarter and by 8% in the full year, resulting in record full
year revenue of $20.2 billion.
- Total backlog increased by 14%3
year-over-year to a new all-time high of $54.1 billion.
- Wins for the year increased by 23% to a
record $28.4 billion, including wins of over $6 billion in all four
quarters, and momentum has continued in the first quarter with more
than $7 billion of large MS and CS wins in October.
- Fourth quarter free cash flow2 of $511
million was a quarterly record, which drove full year free cash
flow of $688 million and resulted in a fourth consecutive year of
free cash flow over $600 million.
- Total debt declined by $256 million in
the fourth quarter, and the Company executed a $150 million
accelerated share repurchase (ASR) that reduced total shares
outstanding by 3%.
Strategic Actions to Substantially Enhance Margins and Reduce
Risk Profile:
- AECOM also announced strategic actions
to improve profitability, de-risk its business profile and to
prioritize investments in its highest-growth markets:
- Initiated a $225 million G&A
reduction plan to maximize the profitability of the Company’s
record $54 billion backlog; the majority of the cost reductions are
expected to occur in the first half of fiscal 2019 and will
primarily benefit the DCS segment where the fiscal 2019 adjusted
operating income margin is expected to increase by at least 110
basis points to greater than 7%.
- Continued evaluation of the Company’s
geographic exposure to prioritize investments in markets with
higher growth prospects and where its competitive advantages are
greatest, which includes the expectation to exit more than 30
countries.
- AECOM Capital formed a joint venture
with Canyon Partners for a real estate investment fund that will
generate management fees to support the segment’s overhead costs
and which will limit AECOM’s future balance sheet commitments.
- Fiscal 2019 adjusted EBITDA guidance of
$920 – $960 million reflects 12% growth at the mid-point as
compared to fiscal 2018, which demonstrates the expected strong
payback on the above initiatives.
- A more profitable and lower-risk
business profile, combined with the Company’s capital allocation
policy focused on shareholder returns, including $850 million
remaining under the $1 billion Board stock repurchase
authorization, is expected to result in consistently strong
financial performance and shareholder value creation.
“Our fourth quarter and full year 2018 results include new
records for revenue, backlog, wins and free cash flow,
demonstrating the strength of our industry-leading franchises and
setting a strong foundation for continued growth,” said Michael S.
Burke, AECOM’s chairman and chief executive officer. “We are proud
of these many accomplishments. However, our adjusted EBITDA for the
fourth quarter and full year was below our expectations due to the
timing of AECOM Capital asset sales, which we now expect in 2019,
and execution challenges on a handful of projects in the
Construction Services segment. Importantly, we are taking strategic
actions from a position of strength that we expect will
substantially improve our profitability and position us to fully
capitalize on our record $54 billion backlog, which is reflected in
our guidance for 12% adjusted EBITDA growth in fiscal 2019.”
“We are pleased to have delivered a record quarter of free cash
flow and to continue our industry-leading track record of
consistently strong cash performance, which enabled further debt
reduction and capital returns to shareholders through the execution
of a $150 million ASR,” said W. Troy Rudd, AECOM’s chief financial
officer. “With our margin-enhancement initiatives well underway,
the profitability of our record backlog is increasing. As a result,
we remain focused on executing our capital allocation policy, which
prioritizes further share repurchases under our $1 billion Board
authorization while balancing the second-half seasonality of our
cash flow and our 2.5x net leverage6 target.”
Wins and Backlog
Full year wins were $28.4 billion, which set a new record for
the Company, and resulted in a book-to-burn ratio5 of 1.3. Wins
included strength across the business, highlighted by a 2.5x
book-to-burn ratio in the MS segment. Total backlog increased by
14%3 over the prior year to $54.1 billion. In addition, the Company
is off to a strong start in fiscal 2019, including more than $7
billion of large MS and CS wins in October.
Business Segments
Design & Consulting Services
(DCS)
The DCS segment delivers planning, consulting, architectural and
engineering design services to commercial and government clients
worldwide in markets such as transportation, facilities,
environmental, energy, water and government.
Revenue in the fourth quarter was $2.2 billion.
Constant-currency organic4 revenue increased by 11%. Full year
revenue was $8.2 billion and constant-currency organic4 revenue
increased by 8%. This performance included 17% growth in the
Americas in the second half of the year, which was driven by strong
growth in the transportation and water markets, including work
related to storm recovery efforts following last year’s hurricanes
in the Southeastern U.S.
Fourth quarter and full year operating income was $126 million
and $455 million, respectively. On an adjusted basis, fourth
quarter and full year operating income1 was $133 million and $483
million, respectively. Profitability in the Americas and
Asia-Pacific regions was strong, which was partially offset by
lower than expected volumes in the U.K. and costs associated with
ongoing efforts in EMEA to improve profitability and align the
business with current and expected market conditions.
Construction Services (CS)
The CS segment provides construction services for energy,
sports, commercial, industrial, and public and private
infrastructure clients.
Revenue in the fourth quarter was $2.1 billion.
Constant-currency organic4 revenue increased by 5%. Full year
revenue was $8.2 billion, and constant-currency organic4 revenue
increased by 7%, led by double-digit growth in the Building
Construction business for the fourth consecutive year and
double-digit growth in the fourth quarter. This strength was
partially offset by an expected decline in Power due to project
completions in prior periods and lower volume following the
Company’s decision to exit the fixed-price combined-cycle gas power
plant construction market. Importantly, the Alliant Energy
Riverside combined cycle gas power plant remains on schedule and on
budget.
Fourth quarter operating income was $21 million and full year
operating loss was $109 million. On an adjusted basis, fourth
quarter and full year operating income1 was $46 million and $156
million, respectively, which reflects strong contributions in the
Power business and solid execution on the vast majority of projects
underway. However, the Company experienced execution issues on a
handful of projects, which offset otherwise strong performance.
Management Services (MS)
The MS segment provides program and facilities management and
maintenance, training, logistics, consulting, technical assistance
and systems-integration services and information technology
services, primarily for agencies of the U.S. government, national
governments around the world and commercial customers.
Revenue in the fourth quarter was $1.0 billion. Organic4 revenue
accelerated in the quarter to 14%. Full year revenue was $3.7
billion, and organic4 revenue increased by 11%.
Operating income was $50 million and $200 million in the fourth
quarter and full year, respectively. On an adjusted basis,
operating income1 was $60 million and $239 million in the fourth
quarter and full year, respectively. Results for the fourth quarter
and the full year represented strong execution across the portfolio
of projects, and the benefits of nearly 120% backlog growth since
the start of fiscal 2017.
AECOM Capital (ACAP)
The ACAP segment invests in and develops real estate, public
private partnership (P3) and infrastructure projects. Operating
income in the fourth quarter was $13 million and full year
operating income was $4 million. In the quarter, ACAP also achieved
the first close on a new third-party real estate investment joint
venture with Canyon Partners.
Tax Rate
The effective tax rate was 15.1% and (11.1%) for the fourth
quarter and full year, respectively. On an adjusted basis, the
effective tax rate was 6.4% and 9.7% for the fourth quarter and
full year, respectively. The Company’s adjusted tax expense in the
fourth quarter included a $28 million benefit related to prior
period federal audits. The Company’s GAAP tax expense in the fourth
quarter included a $38 million impact for a valuation allowance
against foreign tax credits resulting from U.S. tax reform. The
adjusted tax rate was derived by re-computing the annual effective
tax rate on earnings from adjusted net income.7 The adjusted tax
expense differs from the GAAP tax expense based on the taxability
or deductibility and tax rate applied to each of the
adjustments.
Cash Flow
Operating cash flow for the fourth quarter was $532 million and
free cash flow2 was $511 million, which set a new record for the
Company. For the full year, AECOM generated operating cash flow of
$775 million and free cash flow2 of $688 million, which marked the
fourth consecutive year of at least $600 million of free cash flow.
Both operating cash flow and free cash flow increased by 11% as
compared to the prior year.
Balance Sheet
As of September 30, 2018, AECOM had $887 million of total cash
and cash equivalents, $3.7 billion of total debt, $2.8 billion of
net debt and $1.32 billion in unused capacity under its $1.35
billion revolving credit facility. Total debt has declined by $1.7
billion since closing the URS acquisition in October 2014.
Financial Outlook and Impacts of
Strategic Actions
AECOM is initiating fiscal 2019 financial guidance as
follows:
Fiscal Year 2019 Outlook Adjusted EBITDA1
$920 - $960 million Adjusted EPS1 $2.60
– $2.90 Free Cash Flow2 $600 - $800 million Adjusted
Interest Expense
(excluding amortization of deferred
financing fees)
$200 million Amortization8 $88 million
Full-Year Share Count 161 million Effective Tax Rate
for Adjusted Earnings7 ~25% Capital Expenditures9
~$120 million
AECOM expects the G&A reduction program to deliver $140
million of annual run-rate cost savings, net of any leakage and
reinvestment, by the end of fiscal year 2021. Of the gross amount,
the majority has already been actioned since the beginning of the
fiscal year. The Company expects to incur restructuring costs of
$80 to $90 million in fiscal 2019, the majority of which will occur
in the first half of the fiscal year and will be excluded from the
Company’s adjusted results. Total cash costs for the restructuring
are expected to be between $60 and $70 million.
Also included in the Company’s fiscal 2019 guidance is
approximately $13 million of adjusted EBITDA from AECOM Capital
contributions.
Conference Call
AECOM is hosting a conference call today at 12 p.m. Eastern
Time, during which management will make a brief presentation
focusing on the Company's results, strategies and operating trends.
Interested parties can listen to the conference call and view
accompanying slides via webcast at http://investors.aecom.com. The
webcast will be available for replay following the call.
1 Excluding acquisition and integration related items, financing
charges in interest expense, foreign exchange gains, the
amortization of intangible assets, financial impacts associated
with expected and actual dispositions of non-core businesses and
assets, and the revaluation of deferred taxes and one-time tax
repatriation charge associated with U.S. tax reform. If an
individual adjustment has no financial impact then the individual
adjustment is not reflected in the Regulation G Information tables.
See Regulation G Information for a reconciliation of Non-GAAP
measures.2 Free cash flow is defined as cash flow from operations
less capital expenditures net of proceeds from disposals.3 On a
constant-currency basis.4 Organic growth is year-over-year at
constant currency and excludes revenue associated with actual and
planned non-core asset and business dispositions. Results expressed
in constant currency are presented excluding the impact from
changes in currency exchange rates.5 Book-to-burn ratio is defined
as the amount of wins divided by revenue recognized during the
period, including revenue related to work performed in
unconsolidated joint ventures.6 Net debt-to-EBITDA is comprised of
EBITDA as defined in the Company’s credit agreement, which excludes
stock-based compensation, and net debt as defined as total debt on
the Company’s financial statements, net of cash and cash
equivalents.7 Inclusive of non-controlling interest deduction and
adjusted for acquisition and integration expenses, financing
charges in interest expense, the amortization of intangible assets
and financial impacts associated with actual and planned
dispositions of non-core businesses and assets.8 Amortization of
intangible assets expense includes the impact of amortization
included in equity in earnings of joint ventures and
non-controlling interests.9 Capital expenditures, net of proceeds
from disposals.
About AECOM
AECOM (NYSE:ACM) is built to deliver a better world. We design,
build, finance and operate infrastructure assets for governments,
businesses and organizations. As a fully integrated firm, we
connect knowledge and experience across our global network of
experts to help clients solve their most complex challenges. From
high-performance buildings and infrastructure, to resilient
communities and environments, to stable and secure nations, our
work is transformative, differentiated and vital. A Fortune 500
firm, AECOM had revenue of approximately $20.2 billion during
fiscal year 2018. See how we deliver what others can only imagine
at aecom.com and @AECOM.
All statements in this press release other than statements of
historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including any projections of
earnings, revenue, cost savings, profitability, cash flows, tax
rate, share count, stock repurchases, interest expense, capital
expenditures, amortization of intangible assets and financial fees,
or other financial items, any statements of the plans, strategies
and objectives for future operations, profitability, risk profile
and investment strategies and any statements regarding future
economic conditions or performance. Although we believe that the
expectations reflected in our forward-looking statements are
reasonable, actual results could differ materially from those
projected or assumed in any of our forward-looking statements.
Important factors that could cause our actual results,
performance and achievements, or industry results to differ
materially from estimates or projections contained in our
forward-looking statements include, but are not limited to, the
following: our business is cyclical and vulnerable to economic
downturns and client spending reductions; we are dependent on
long-term government contracts and subject to uncertainties related
to government contract appropriations; governmental agencies may
modify, curtail or terminate our contracts; government contracts
are subject to audits and adjustments of contractual terms; impacts
of the Tax Cuts and Jobs Acts legislation; we may experience losses
under fixed-price contracts; we have limited control over
operations run through our joint venture entities; we may be liable
for misconduct by our employees or consultants or our failure to
comply with laws or regulations applicable to our business; we may
not maintain adequate surety and financial capacity; we are highly
leveraged and may not be able to service our debt and guarantees;
we have exposure to political and economic risks in different
countries where we operate as well as currency exchange rate
fluctuations; we may not be able to retain and recruit key
technical and management personnel; we may be subject to legal
claims and we may have inadequate insurance coverage; we are
subject to environmental law compliance and we may have inadequate
nuclear indemnification; there may be unexpected adjustments and
cancellations related to our backlog; we are dependent on partners
and third parties who may fail to satisfy their obligations; we may
not be able to manage pension costs; we may face cybersecurity
issues and IT outages; as well as other additional risks and
factors that could cause actual results to differ materially from
our forward-looking statements set forth in our reports filed with
the Securities and Exchange Commission. We do not intend, and
undertake no obligation, to update any forward-looking
statement.
This press release contains financial information calculated
other than in accordance with U.S. generally accepted accounting
principles (“GAAP”). In particular, the Company believes that
non-GAAP financial measures such as adjusted EPS, adjusted EBITDA,
adjusted operating income, adjusted tax rate, adjusted interest
expense, organic revenue, and free cash flow also provide a
meaningful perspective on its business results as the Company
utilizes this information to evaluate and manage the business. We
use adjusted EBITDA, EPS and operating income to exclude the impact
of non-operating items, such as amortization expense, taxes,
acquisition and integration expenses, and non-core operating
losses. We use free cash flow to represent the cash generated after
capital expenditures to maintain our business. Our non-GAAP
disclosure has limitations as an analytical tool, should not be
viewed as a substitute for financial information determined in
accordance with GAAP, and should not be considered in isolation or
as a substitute for analysis of our results as reported under GAAP,
nor is it necessarily comparable to non-GAAP performance measures
that may be presented by other companies. A reconciliation of these
non-GAAP measures is found in the Regulation G Information tables
at the back of this release.
When we provide our long term projections for
organic revenue growth, adjusted EBITDA, adjusted EPS growth, and
free cash flow on a forward-looking basis, the closest
corresponding GAAP measure and a reconciliation of the differences
between the non-GAAP expectation and the corresponding GAAP measure
generally is not available without unreasonable effort due to
length of the forecasted period and potential high variability,
complexity and low visibility as to items that would be excluded
from the GAAP measure in the relevant future period.
AECOMConsolidated Statements of
Income(in thousands, except per share data)
Three Months Ended Twelve
Months Ended Sep 30,2017 Sep
30,2018 %Change Sep
30,2017 Sep 30,2018
%Change Revenue $ 4,856,388 $ 5,305,850 9.3 %
$ 18,203,402 $ 20,155,512 10.7 % Cost of revenue 4,686,261
5,117,804 9.2 % 17,519,682 19,504,863 11.3 % Gross profit 170,127
188,046 10.5 % 683,720 650,649 (4.8 )% Equity in earnings of
joint ventures 31,915 25,512 (20.1 )% 141,582 81,133 (42.7 )%
General and administrative expenses (36,882 ) (35,741 ) (3.1 )%
(133,309 ) (135,787 ) 1.9 % Impairment of assets held for sale,
including goodwill — — 0.0 % — (168,178 ) 0.0 % Acquisition and
integration expenses (3,300 ) — (100.0 )% (38,709 ) — (100.0 )%
(Loss) gain on disposal activities — (800 ) 0.0 % 572 (2,949 ) NM
Income from operations 161,860 177,017 9.4 % 653,856 424,868 (35.0
)% Other income 2,399 2,593 8.1 % 6,636 20,135 203.4 %
Interest expense (54,325 ) (55,564 ) 2.3 % (231,310 ) (267,519 )
15.7 % Income before income tax expense 109,934 124,046 12.8 %
429,182 177,484 (58.6 )% Income tax expense (benefit) 6,150
18,719 204.4 % 7,706 (19,643 ) NM Net income 103,784 105,327
1.5 % 421,476 197,127 (53.2 )% Noncontrolling interests in
income of consolidated subsidiaries, net of tax (15,296 ) (21,350 )
39.6 % (82,086 ) (60,659 ) (26.1 )% Net income attributable
to AECOM $ 88,488 $ 83,977 (5.1 )% $ 339,390 $ 136,468 (59.8 )%
Net income attributable to AECOM per share: Basic $ 0.56 $
0.53 (5.4 )% $ 2.18 $ 0.86 (60.6 )% Diluted $ 0.55 $ 0.52 (5.5 )% $
2.13 $ 0.84 (60.6 )% Weighted average shares outstanding:
Basic 157,529 158,605 0.7 % 155,728 159,101 2.2 % Diluted 161,076
161,765 0.4 % 159,135 162,261 2.0 %
Balance Sheet and Cash Flow
Information(in thousands)
September 30,2017
September 30,2018 Balance Sheet Information: Total
cash and cash equivalents $ 802,362 $ 886,733 Accounts receivable –
net 5,127,743 5,468,821 Working capital 1,103,843 997,645 Total
debt, excluding unamortized debt issuance costs 3,896,398 3,673,463
Total assets 14,396,956 14,681,131 Total AECOM stockholders’ equity
3,996,126 4,092,780
AECOM Reportable
Segments (in thousands)
Design
&ConsultingServices
ConstructionServices ManagementServices
AECOM Capital Corporate Total Three Months
Ended September 30, 2018 Revenue $ 2,171,310 $ 2,118,303 $
1,016,237 $ - $ - $ 5,305,850 Cost of revenue 2,046,205
2,100,849 970,750 -
- 5,117,804 Gross profit
125,105 17,454 45,487 - - 188,046 Equity in earnings of joint
ventures 1,311 4,644 4,357 15,200 - 25,512 General and
administrative expenses - - - (2,059 ) (33,682 ) (35,741 ) Loss on
disposal activities - (800 ) -
- - (800 ) Income (loss) from
operations $ 126,416 $ 21,298 $ 49,844 $
13,141 $ (33,682 ) $ 177,017 Gross profit as a
% of revenue 5.8 % 0.8 % 4.5 % - - 3.5 %
Three
Months Ended September 30, 2017 Revenue $ 1,994,977 $ 1,970,992
$ 890,419 $ - $ - $ 4,856,388 Cost of revenue 1,892,599
1,938,464 855,198 -
- 4,686,261 Gross profit 102,378
32,528 35,221 - - 170,127 Equity in earnings of joint ventures
3,814 5,678 13,124 9,299 - 31,915 General and administrative
expenses - - - (2,120 ) (34,762 ) (36,882 ) Acquisition and
integration expenses - - -
- (3,300 ) (3,300 ) Income
(loss) from operations $ 106,192 $ 38,206 $ 48,345
$ 7,179 $ (38,062 ) $ 161,860 Gross
profit as a % of revenue 5.1 % 1.7 % 4.0 % - - 3.5 %
AECOM Reportable Segments (in thousands)
Design
&ConsultingServices
ConstructionServices ManagementServices
AECOM Capital Corporate Total Twelve Months
Ended September 30, 2018 Revenue $ 8,223,174 $ 8,238,852 $
3,693,486 $ - $ - $ 20,155,512 Cost of revenue 7,783,863
8,198,480 3,522,520 -
- 19,504,863 Gross profit
439,311 40,372 170,966 - - 650,649 Equity in earnings of joint
ventures 15,811 21,534 28,588 15,200 - 81,133 General and
administrative expenses - - - (11,228 ) (124,559 ) (135,787 ) Loss
on disposal activities - (2,949 ) - - - (2,949 ) Impairment of
assets held for sale, including goodwill -
(168,178 ) - - -
(168,178 ) Income (loss) from operations $ 455,122 $
(109,221 ) $ 199,554 $ 3,972 $ (124,559 ) $ 424,868
Gross profit as a % of revenue 5.3 % 0.5 % 4.6 % - -
3.2 % Contracted backlog $ 9,133,465 $ 9,333,822 $ 3,395,460
$ - $ - $ 21,862,747 Awarded backlog 7,525,817 7,144,572 14,577,130
- - 29,247,519 Unconsolidated JV backlog -
2,025,269 934,147 - -
2,959,416 Total backlog $ 16,659,282 $
18,503,663 $ 18,906,737 $ - $ - $
54,069,682
Twelve Months Ended September
30, 2017 Revenue $ 7,566,800 $ 7,295,553 $ 3,341,049 $ - $ - $
18,203,402 Cost of revenue 7,171,921 7,202,663
3,145,098 - -
17,519,682 Gross profit 394,879 92,890 195,951 - -
683,720 Equity in earnings of joint ventures 16,392 22,274 45,190
57,726 - 141,582 General and administrative expenses - - - (8,714 )
(124,595 ) (133,309 ) Acquisition and integration expenses - - - -
(38,709 ) (38,709 ) Gain on disposal activities 572
- - - -
572 Income (loss) from operations $ 411,843 $
115,164 $ 241,141 $ 49,012 $ (163,304 ) $
653,856 Gross profit as a % of revenue 5.2 % 1.3 %
5.9 % - - 3.8 % Contracted backlog $ 8,790,860 $ 12,298,947
$ 3,144,225 $ - $ - $ 24,234,032 Awarded backlog 7,342,989
4,015,274 8,600,755 - - 19,959,018 Unconsolidated JV backlog
- 2,344,320 1,012,506 -
- 3,356,826 Total backlog $
16,133,849 $ 18,658,541 $ 12,757,486 $ -
$ - $ 47,549,876
AECOMRegulation G
Information(in millions)
Reconciliation of
Revenue to Amounts Provided by Acquired Companies
Three Months EndedSeptember 30, 2018
Twelve Months EndedSeptember 30, 2018
Total
Provided
byAcquiredCompanies
ExcludingEffect
ofAcquiredCompanies
Total
Provided
byAcquiredCompanies
ExcludingEffect
ofAcquiredCompanies
Revenue AECOM Consolidated $ 5,305.9 $ 77.5 $ 5,228.4 $
20,155.5 $ 489.6 $ 19,665.9 Design & Consulting Services
2,171.3 - 2,171.3 8,223.2 - 8,223.2 Construction Services 2,118.3
77.5 2,040.8 8,238.9 489.6 7,749.3 Management Services 1,016.3 -
1,016.3 3,693.4 - 3,693.4
Reconciliation of
Net Income Attributable to AECOM to EBITDA and to Adjusted
EBITDA
Three Months Ended Sep 30, 2017
Jun 30,
2018
Sep 30,
2018
Net income attributable to AECOM $ 88.5 $ 60.9 $ 84.0 Income
tax expense 6.2 33.1 18.8 Income attributable
to AECOM before income taxes 94.7 94.0 102.8 Depreciation and
amortization expense1 74.0 68.0 68.5 Interest income2 (1.8 ) (2.3 )
(2.1 ) Interest expense3 50.8 52.7 52.5 EBITDA
$ 217.7 $ 212.4 $ 221.7 Non-core operating losses 3.7 18.7
17.5 Acquisition and integration related items 3.3 (6.5 ) (4.4 )
Loss on disposal activities - 2.1 0.8 Depreciation expense included
in non-core operating losses and acquisition and integration items
above - (3.7 ) (2.2 ) Adjusted EBITDA $ 224.7
$ 223.0 $ 233.4
1 Includes the amount for
noncontrolling interests in consolidated subsidiaries
2 Included in other income
3 Excludes related amortization
Fiscal Years Ended September 30,
2014 2015 2016
2017 2018 Net income (loss)
attributable to AECOM $ 229.9 $ (154.8 ) $ 96.1 $ 339.4 $ 136.5
Income tax expense (benefit) 82.0 (80.2 )
(37.9 ) 7.7 (19 6 ) Income (loss) attributable to
AECOM before income taxes 311.9 (235.0 ) 58.2 347.1 116.9
Depreciation and amortization expense1 95.4 607.0 414.5 280.0 281.0
Interest income2 (2.2 ) (4.8 ) (4.3 ) (5.5 ) (9.6 ) Interest
expense3 38.5 282.5 225.8 212.4
249.4 EBITDA $ 443.6 $ 649.7 $ 694.2 $ 834.0 637.7 Non-core
operating losses - - 36.9 9.4 57.4 Impairment of assets held for
sale, including goodwill - - - - 168.2 Acquisition and integration
related items 27.3 398.4 213.6 38.7 (10.9 ) Loss (gain) on disposal
activities - - 42.6 (0.6 ) 2.9 FX gain from forward currency
contract - - - - (9.1 ) Depreciation expense included in non-core
operating losses and acquisition and integration items above
- (20.9 ) (28.8 ) (0.8 ) (9.7 )
Adjusted EBITDA $ 470.9 $ 1,027.2 $ 958.5 $ 880.7 $ 836.5
1 Includes the amount for
noncontrolling interests in consolidated subsidiaries
2 Included in other income
3 Excludes related amortization
AECOMRegulation G
Information(in millions)
Reconciliation of
Total Debt to Net Debt
Balances at: Sep 30, 2017
Jun 30, 2018 Sep 30, 2018 Short-term
debt $ 1.2 $ 47.4 $ 8.4 Current portion of long-term debt 140.8
125.6 134.7 Long-term debt, gross 3,754.4 3,756.7
3,530.4 Total debt, excluding unamortized debt issuance
costs 3,896.4 3,929.7 3,673.5 Less: Total cash and cash equivalents
802.4 801.4 886.7 Net debt $ 3,094.0 $ 3,128.3
$ 2,786.8
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
Three Months Ended Dec 31, 2016
Mar 31, 2017 Jun 30,2017 Sep
30,2017 Dec 31, 2017 Mar 31,
2018 Jun 30,2018 Sep 30,2018
Net cash provided by (used in) operating activities $ 77.5 $ (46.1
) $ 413.9 $ 251.4 $ 52.4 $ 118.4 $ 71.9 $ 531.9 Capital
expenditures, net (21.0 ) (17.7 ) (19.8 )
(20.0 ) (18.5 ) (23.7 ) (23.5 )
(21.2 ) Free cash flow $ 56.5 $ (63.8 ) $ 394.1 $ 231.4 $ 33.9 $
94.7 $ 48.4 $ 510.7
Fiscal Years Ended September
30, 2012 2013 2014
2015 2016 2017
2018 Net cash provided by operating activities $ 433.4 $
408.6 $ 360.6 $ 764.4 $ 814.2 $ 696.7 $ 774.6 Capital expenditures,
net (62.9 ) (52.1 ) (62.8 ) (69.4 )
(136.8 ) (78.5 ) (86.9 ) Free cash flow $
370.5 $ 356.5 $ 297.8 $ 695.0 $ 677.4 $ 618.2 $ 687.7
AECOM Regulation G Information (in millions,
except per share data) Three Months
Ended Twelve Months Ended Sep 30,2017
Jun 30,2018 Sep
30,2018 Sep 30,2017 Sep
30,2018
Reconciliation of
Income from Operations toAdjusted Income from
Operations
Income from operations $ 161.9 $ 160.8 $ 177.0 $ 653.9 $ 424.9
Non-core operating losses 3.7 18.5 17.5 9.4 57.2 Impairment of
assets held for sale, including goodwill - - - - 168.2 Acquisition
and integration related items 3.3 (7.9 ) (4.8 ) 38.7 (12.7 ) Loss
(gain) on disposal activities - 2.1 0.8 (0.6 ) 2.9 Amortization of
intangible assets 30.1 28.4 27.4 113.6
116.4 Adjusted income from operations $ 199.0 $ 201.9 $
217.9 $ 815.0 $ 756.9
Reconciliation of
Income Before Income Taxes toAdjusted Income Before Income
Taxes
Income before income tax expense (benefit) $ 110.0 $ 108.2 $ 124.1
$ 429.2 $ 177.5 Non-core operating losses 3.7 18.6 17.4 9.4 57.2
Impairment of assets held for sale, including goodwill - - - -
168.2 Acquisition and integration related items 3.3 (7.9 ) (4.8 )
38.7 (12.7 ) Loss (gain) on disposal activities - 2.1 0.8 (0.6 )
2.9 Amortization of intangible assets 30.1 28.4 27.4 113.6 116.4 FX
gain from forward currency contract - - - - (9.1 ) Financing
charges in interest expense 3.1 2.6 2.9
17.5 52.6 Adjusted income before income tax expense $ 150.2
$ 152.0 $ 167.8 $ 607.8 $ 553.0
AECOM
Regulation G Information (in millions, except per share
data) Three Months Ended Twelve
Months Ended Sep 30,2017 Jun
30,2018 Sep 30,2018 Sep
30,2017 Sep 30,2018
Reconciliation of
Income Taxes to Adjusted Income Taxes
Income tax expense (benefit) $ 6.2 $ 33.1 $ 18.7 $ 7.7 $ (19.7 )
Tax effect of the above adjustments†
6.5 2.3 9.4 41.3 43.7 Revaluation of deferred taxes and one-time
tax repatriation charges associated with U.S. tax reform - - 6.1 -
47.8 Valuation allowances - - (25.0 ) -
(25.0 ) Adjusted income tax expense $ 12.7 $ 35.4 $ 9.2 $
49.0 $ 46.8
† Adjusts the income tax expense (benefit)
during the period to exclude the impact on our effective tax rate
of the pre-tax adjustments shown above.
Reconciliation of
Noncontrolling Interest toAdjusted Noncontrolling
Interests
Noncontrolling interests in income of consolidated subsidiaries,
net of tax $ (15.3 ) $ (14.2 ) $ (21.4 ) $ (82.1 ) $ (60.7 )
Acquisition and integration related items, net of tax - 1.4 0.4 -
1.8 Amortization of intangible assets included in NCI,net of tax
(2.6 ) (2.8 ) (3.3 ) (9.5 )
(11.9 ) Adjusted noncontrolling interests in income of consolidated
subsidiaries, net of tax $ (17.9 ) $ (15.6 ) $ (24.3 ) $ (91.6 ) $
(70.8 )
Reconciliation of
Net Income Attributable to AECOMto Adjusted Net Income
Attributable to AECOM
Net income attributable to AECOM $ 88.5 $ 60.9 $ 84.0 $ 339.4 $
136.5 Non-core operating losses 3.7 18.5 17.5 9.4 57.2 Impairment
of assets held for sale, including goodwill - - - - 168.2
Acquisition and integration related items 3.3 (6.5 ) (4.4 ) 38.7
(10.9 ) Loss (gain) on disposal activities - 2.1 0.8 (0.6 ) 2.9
Amortization of intangible assets 30.1 28.4 27.4 113.6 116.4 FX
gain from forward currency contract - - - - (9.1 ) Financing
charges in interest expense 3.1 2.6 2.9 17.5 52.6
Tax effect of the above adjustments†
(6.5 ) (2.3 ) (9.4 ) (41.3 ) (43.7 ) Revaluation of deferred taxes
and one-time tax repatriation charges associated with U.S. tax
reform - - (6.1 ) - (47.8 ) Valuation allowances - - 25.0 - 25.0
Amortization of intangible assets included in NCI,net of tax
(2.6 ) (2.8 ) (3.3 ) (9.5 ) (11.9 )
Adjusted net income attributable to AECOM $ 119.6 $ 100.9 $ 134.4 $
467.2 $ 435.4
AECOM Regulation G
Information (in millions, except per share data)
Three Months Ended Twelve Months Ended
Sep 30,2017 Jun 30,2018
Sep 30,2018 Sep 30,2017 Sep
30,2018
Reconciliation of
Net Income per Diluted Shareto Adjusted Net Income per
Diluted Share
Net income attributable to AECOM – per diluted share $ 0.55 $ 0.37
$ 0.52 $ 2.13 $ 0.84 Per diluted share adjustments: Non-core
operating losses 0.02 0.11 0.11 0.06 0.35 Impairment of assets held
for sale, including goodwill - - - - 1.04 Acquisition and
integration related items 0.02 (0.04 ) (0.03 ) 0.24 (0.07 ) Loss on
disposal activities - 0.01 - - 0.02 Amortization of intangible
assets 0.18 0.18 0.17 0.71 0.72 FX gain from forward currency
contract - - - - (0.06 ) Financing charges in interest expense 0.02
0.02 0.02 0.11 0.32
Tax effect of the above adjustments†
(0.03 ) (0.01 ) (0.06 ) (0.25 ) (0.27 ) Revaluation of deferred
taxes and one-time tax repatriation charges associated with U.S.
tax reform - - (0.03 ) - (0.29 ) Valuation allowances - - 0.15 -
0.15 Amortization of intangible assets included in NCI,net of tax
(0.02 ) (0.02 ) (0.02 ) (0.06 )
(0.07 ) Adjusted net income attributable to AECOM – per diluted
share $ 0.74 $ 0.62 $ 0.83 $ 2.94 $ 2.68 Weighted average
shares outstanding – diluted 161.1 163.2 161.8 159.1 162.3
Reconciliation of
EBITDA to Adjusted Incomefrom Operations
EBITDA(1) $ 217.7 $ 212.4 $ 221.7 $ 834.0 $ 637.7 Non-core
operating losses 3.7 18.7 17.5 9.4 57.4 Impairment of assets held
for sale, including goodwill - - - - 168.2 Acquisition and
integration related items 3.3 (6.5 ) (4.4 ) 38.7 (10.9 ) Loss
(gain) on disposal activities - 2.1 0.8 (0.6 ) 2.9 FX gain from
forward currency contract - - - - (9.1 ) Depreciation expense
included in non-core operating losses, acquisition and integration
expenses above - (3.7 ) (2.2 ) (0.8 )
(9.7 ) Adjusted EBITDA $ 224.7 $ 223.0 $ 233.4 $ 880.7 $
836.5 Other income (2.4 ) (2.7 ) (2.6 ) (6.6 ) (20.1 ) FX gain from
forward currency contract - - - - 9.1 Interest income(2) 1.8 2.3
2.1 5.5 9.6 Depreciation(3) (43.0 ) (36.3 ) (39.3 ) (156.2 ) (149.0
) Noncontrolling interests in income of consolidated subsidiaries,
net of tax 15.3 14.2 21.4 82.1 60.7 Acquisition and integration
related items included in NCI, net of tax - (1.4 ) (0.4 ) - (1.8 )
Amortization of intangible assets included in NCI,net of tax
2.6 2.8 3.3 9.5 11.9 Adjusted income
from operations $ 199.0 $ 201.9 $ 217.9 $ 815.0 $ 756.9
(1) See Reconciliation of Net Income Attributable to
AECOM to EBITDA (2) Included in other income (3) Excludes
depreciation from non-core operating losses and acquisition and
integration expense
AECOM Regulation
G Information (in millions, except per share data)
Three Months Ended Twelve Months Ended Sep
30,2017 Jun 30,2018
Sep 30,2018 Sep 30,2017 Sep
30,2018
Reconciliation of
Segment Income from Operationsto Adjusted Income from
Operations
Design & Consulting Services Segment: Income from
operations $ 106.1 $ 120.4 $ 126.4 $ 411.8 $ 455.1 Non-core
operating losses 3.8 0.7 0.9 9.4 2.8 Gain on disposal activities -
- - (0.6 ) - Amortization of intangible assets 6.5
6.4 5.8 27.2 24.6 Adjusted income from
operations $ 116.4 $ 127.5 $ 133.1 $ 447.8 $ 482.5
Construction Services Segment: Income (loss) from operations
$ 38.2 $ 9.3 $ 21.3 $ 115.2 $ (109.2 ) Acquisition and integration
related items - (7.9 ) (4.8 ) - (12.7 ) Non-core operating losses -
17.9 16.6 - 54.5 Impairment of assets held for sale, including
goodwill - - - - 168.2 Loss on disposal activities - 2.1 0.8 - 2.9
Amortization of intangible assets 10.6 12.3
11.7 34.4 52.6 Adjusted income from operations $ 48.8
$ 33.7 $ 45.6 $ 149.6 $ 156.3
Management Services
Segment: Income from operations $ 48.3 $ 66.2 $ 49.9 $ 241.1 $
199.6 Amortization of intangible assets 13.1 9.7
9.9 52.1 39.2 Adjusted income from operations
$ 61.4 $ 75.9 $ 59.8 $ 293.2 $ 238.8
AECOMRegulation G Information
FY19 GAAP EPS Guidance based on
Adjusted EPS Guidance
Fiscal Year End
2019
(all figures approximate) GAAP EPS Guidance
$1.72 to $2.07 Adjusted EPS Excludes: Amortization of intangible
assets $0.55 Acquisition and integration related items ($0.09) FY19
restructuring $0.50 to $0.55 Financing charges in interest expense
$0.06 Tax effect of the above items* ($0.28) Tax expense associated
with U.S. tax reform $0.09 Adjusted EPS Guidance $2.60 to $2.90
*The adjusted tax expense differs from the GAAP tax expense
based on the deductibility and tax rate applied to each of the
adjustments.
FY19 GAAP Net Income Guidance based on
Adjusted EBITDA Guidance
Fiscal Year End
2019
(in millions, all figures approximate) GAAP Net
Income Attributable to AECOM Guidance* $277 to $332 Adjusted
Net Income Attributable to AECOM Excludes: Amortization of
intangible assets, net of NCI $88 Acquisition and integration
related items ($15) FY19 restructuring $80 to $90 Financing charges
in interest expense $10 Tax effect of the above items** ($45) Tax
expense associated with U.S. tax reform $15 Adjusted Net Income
Attributable to AECOM $442 Adjusted EBITDA Excludes: Interest
Expense $204 Interest Income ($4) Depreciation $150 Taxes $148
Adjusted EBITDA Guidance $920 to $960
*Calculated based on the mid-point of AECOM’s fiscal year 2018
EPS guidance.**The adjusted tax expense differs from the GAAP tax
expense based on the deductibility and tax rate applied to each of
the adjustments.Note: the components in this table may not sum to
the total due to rounding.
FY19 GAAP Tax Rate Guidance based on
Adjusted Tax Rate Guidance
(all figures approximate)
Fiscal Year End
2019
GAAP Tax Rate Guidance 24% Tax rate impact from
adjustments to GAAP earnings (2%) Tax rate impact from inclusion of
NCI deduction 3% Effective Tax Rate for Adjusted Earnings Guidance
25%
FY19 GAAP Interest Expense Guidance
based on Adjusted Interest Expense Guidance
Fiscal Year End
2019
(in millions, all figures approximate) GAAP Interest
Expense Guidance $214 Financing charge in interest expense
$10 Interest income $4 Adjusted Interest Expense Guidance $200
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181112005217/en/
AECOMInvestors:Will Gabrielski, 213-593-8208Vice
President, Investor
RelationsWilliam.Gabrielski@aecom.comorMedia:Brendan
Ranson-Walsh, 213-996-2367Vice President, Global Communications
& Corporate ResponsibilityBrendan.Ranson-Walsh@aecom.com
AECOM (NYSE:ACM)
Historical Stock Chart
From Mar 2024 to Apr 2024
AECOM (NYSE:ACM)
Historical Stock Chart
From Apr 2023 to Apr 2024